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3-16 FINANCIAL STATEMENTS ment are provided here. The Davidson Corporation's balance sheet and income state- Davidson Corporation: Balance Sheet as of December 31, 2018 (Millions of Dollars) Liabilities and Equity Assets $ $ 15 515 120 280 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment 880 220 $1,410 2,590 Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (100 million shares) Retained earnings Common equity Total liabilities and equity $ 620 1,520 $2,140 260 1,600 $1,860 $4,000 Total assets $4,000 Davidson Corporation: Income Statement for Year Ending December 31, 2018 (Millions of Dollars) Sales $ 6,250 Operating costs excluding depreciation and amortization 5.230 EBITDA $ 1,020 Depreciation and amortization 220 EBIT Interest EBT $ 620 Taxes (40%) Net income $ 372 Common dividends paid $ 146 Earnings per share $ 3.72 800 180 248 Chapter 3 Financial Statements, Cash Flow, and Taxes a. Construct the statement of stockholders' equity for December 31, 2018. No common stock was issued during 2018. b. How much money has been reinvested in the firm over the years? c. At the present time, how large a check could be written without it bouncing?! d. How much money must be paid to current creditors within the next year? 3-16 FINANCIAL STATEMENTS ment are provided here. The Davidson Corporation's balance sheet and income state- Davidson Corporation: Balance Sheet as of December 31, 2018 (Millions of Dollars) Liabilities and Equity Assets $ $ 15 515 120 280 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment 880 220 $1,410 2,590 Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (100 million shares) Retained earnings Common equity Total liabilities and equity $ 620 1,520 $2,140 260 1,600 $1,860 $4,000 Total assets $4,000 Davidson Corporation: Income Statement for Year Ending December 31, 2018 (Millions of Dollars) Sales $ 6,250 Operating costs excluding depreciation and amortization 5.230 EBITDA $ 1,020 Depreciation and amortization 220 EBIT Interest EBT $ 620 Taxes (40%) Net income $ 372 Common dividends paid $ 146 Earnings per share $ 3.72 800 180 248 Chapter 3 Financial Statements, Cash Flow, and Taxes a. Construct the statement of stockholders' equity for December 31, 2018. No common stock was issued during 2018. b. How much money has been reinvested in the firm over the years? c. At the present time, how large a check could be written without it bouncing?! d. How much money must be paid to current creditors within the next year

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